Are User Reviews Hurting or Helping?
I have long been fascinated with neuroscience and the role it can play in marketing ever since that legendary case study of an upscale hotel in Amsterdam selling a hamburger for $20 (in the days when one was typically sold for under $3). In that case, the restaurant presented its menu in a very heavy block of transparent plastic, and discovered that “haptic sensations” (the sensation of touch) created a positive impact on the customer and thus the over-priced burger had a perceived higher, more positive value.
In 2016, as more and more decisions are made digitally — without the benefit of a tactile encounter — marketers have been seeking ways to tap into a consumers subconscious. When, in 2004, Yelp provided a platform for user-generated reviews, brands quickly discovered that the court of public opinion could make (or break) a small business.
One short year later, a user-generated content (UGC) strategy had gone mainstream, but with the brand itself firmly in the driver’s seat. These days, sites ranging from Amazon to the local car dealership encourage customers to provide feedback immediately after purchase. But to what end?
In 2014, a research firm called Impowered partnered with Nielson to study which type of content was most instrumental at various purchase stages in terms of driving a purchase decision. The result? Eighty-three percent considered "expert content" to be more valuable than user reviews.
If expert content is the hero influencing brand purchase decisions, why do companies continue to persist in their pursuit of user-generated content?
Eighty-four percent of Millennials report that UGC on a brand's website has at least some influence on what they buy, compared to 70 percent of Boomers. In fact there are many purchase decisions, both big and small, that Millennials won’t make without UGC. In fact, one report claims that UGC is the best way to push Millennials further down the conversion funnel since they trust it 50 percent more than any other type of media.
A blog that challenges B-to-B marketers to learn, share, question, and focus on getting it right—the first time. Carolyn Goodman is President/Creative Director of Goodman Marketing Partners. An award-winning creative director, writer and in-demand speaker, Carolyn has spent her 30-year career helping both B-to-B and B-to-C clients cut through business challenges in order to deliver strategically sound, creatively brilliant marketing solutions that deliver on program objectives. To keep her mind sharp, Carolyn can be found most evenings in the boxing ring, practicing various combinations. You can find her at the Goodman Marketing website, on LinkedIn, or on Twitter @CarolynGoodman.